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Chandigarh: In a strategic move to deepen its presence in India’s booming financial services sector, Master Trust has formally applied to the Securities and Exchange Board of India (SEBI) for a mutual fund business license. The application was filed through Master Capital Services Limited, the flagship entity of the Master Trust Group, with a proposal to act as the sponsor of a new asset management company (AMC).
This marks a significant expansion for the Chandigarh-headquartered financial services firm, which has been serving Indian investors for over four decades. With this development, Master Trust aims to establish itself as a full-spectrum investment house, offering a comprehensive range of wealth-building solutions, including actively managed mutual fund schemes.
Eyeing a Share of India’s ₹70 Lakh Crore Mutual Fund Industry
Master Trust’s foray into mutual funds comes at a time when India’s mutual fund industry is witnessing unprecedented growth, with assets under management (AUM) crossing the ₹70 lakh crore milestone. This rapid expansion is being driven by increasing financial awareness, rising disposable incomes, and greater adoption of digital investment platforms.
Recognizing this momentum, Master Trust believes the timing is ideal to enter the mutual fund space. The company said it intends to cater to both retail and institutional investors by launching thoughtfully designed investment products aimed at delivering long-term value.
Product Strategy: Blending Research with Technology
According to the proposal submitted to SEBI, the upcoming mutual fund house will offer a range of equity-oriented mutual fund schemes that span large-cap, mid-cap, and small-cap categories. In addition, a multi-asset fund is also on the drawing board, reflecting the company’s commitment to diversification and risk-adjusted returns.
The fund management strategy will leverage a hybrid approach that combines data-driven quantitative models with traditional bottom-up fundamental research. This dual methodology is intended to identify high-potential investment opportunities while managing risk through scientific analysis.
Master Trust emphasized that its products would be structured to offer simplicity, transparency, and affordability—key traits that resonate with modern Indian investors. The focus will be on crafting schemes that align with diverse financial goals, such as wealth creation, retirement planning, and children’s education.
Leveraging Experience and Digital Infrastructure
With a customer base of over 4.2 lakh investors across India, Master Trust brings to the table a wealth of experience in equities, derivatives, commodities, and wealth management. The firm also prides itself on its robust digital infrastructure, which it plans to leverage extensively to ensure seamless access to mutual fund services.
Over the years, Master Trust has successfully built a hybrid model that integrates online platforms with a strong offline network of branches and relationship managers. This omni-channel approach is expected to play a pivotal role in distributing mutual fund products, especially in Tier 2 and Tier 3 cities, where financial inclusion is rapidly gaining ground.
“Our mission has always been to democratize access to quality financial products,” said a senior official from Master Trust. “By entering the mutual fund business, we hope to further this mission and empower investors with professionally managed solutions tailored to their needs.”
A Trusted Name in Indian Finance
Founded over 40 years ago, Master Trust has grown into a trusted name in India’s financial services ecosystem. The group’s offerings span across equity and commodity broking, derivatives trading, portfolio management services (PMS), financial advisory, and insurance distribution. This extensive suite of services positions the firm well to complement its new mutual fund venture.
The proposed AMC will benefit from the group’s decades-long expertise in navigating India’s capital markets, as well as its deep understanding of investor behavior across market cycles.
Regulatory Path Ahead
Now that the formal application has been submitted, SEBI will undertake a thorough review process before granting approval. This includes evaluating the sponsor’s financial stability, track record, governance standards, infrastructure capabilities, and commitment to regulatory compliance.
If approved, Master Trust will join a growing list of financial firms diversifying into the mutual fund space to capitalize on India’s investment boom. Notably, in recent years, a number of fintech firms, stockbrokers, and traditional financial institutions have entered the AMC business, reflecting the industry’s strong future prospects.
Future Outlook
The entry of Master Trust into the mutual fund arena underscores a broader trend in the Indian financial sector, where legacy players are reinventing themselves to meet the aspirations of a new generation of investors. With increasing digitization, evolving investor preferences, and strong regulatory oversight, the mutual fund industry is poised for continued expansion.
For Master Trust, the mutual fund license represents not just a new business vertical but a strategic opportunity to build long-term relationships with clients by helping them navigate their financial journeys.
As the Indian investment landscape matures, Master Trust’s combination of time-tested experience and modern digital capabilities positions it to become a meaningful player in the mutual fund ecosystem. The industry now awaits SEBI’s nod, which could open the door to yet another trusted investment option for millions of Indians.
